Pag-IBIG declares P7.882-B dividends
May 27, 2011 12:40 am
MANILA, May 26 The Home Development Mutual Fund (Pag-IBIG Fund) on Thursday announced that the countrys provident fund for Filipino workers recently approved and declared P7.882 billion as dividends for the year 2010, benefiting its nine million members worldwide.
This was announced by Vice President Jejomar C. Binay, in his capacity as chairman of the Housing and Urban Development Coordinating Council (HUDCC) and of the Board of Trustees of Pag-IBIG Fund.
The amount comprises 71 percent of the net income of the Pag-IBIG Fund in 2010," Binay said.
The dividends were declared after taking into consideration adjustments due to the adoption of policies based on new accounting standards particularly on risk adjustments for major balance sheet accounts.
This is also in compliance with capital adequacy policies so that the Funds capital covers its major risk exposures and thus ensures its sustainability.
The Board in its November 2010 meeting approved the Funds Risk Governance Structure and the reconstitution of the Board Oversight Committees to include a Board Risk and Capital Committee.
This Committee, among others, oversees the development of policies covering current and projected capital levels as they relate to applicable regulatory requirements and economic capital.
Lawyer Darlene Marie B. Berberabe, Pag-IBIG Fund CEO, added that under the Implementing Rules and Regulations of R.A. 9679 or the HDMF Law of 2009, the Board of Trustees is mandated to set aside annually an amount, which in no case shall be less than 70 percent of the agencys annual net income to be paid in the form of dividends to members and proportionately credited to their Total Accumulated Value or savings with Pag-IBIG Fund. All dividends are tax-free. (PNA) DCT/FFC/JCA